Offshore investors continue to be attracted to New Zealand. Here’s another investor story:
SYDNEY, Sept 6 (Reuters) - The Nordic Investment Bank (NIB) has priced its NZ400 million ($276 million) 3-year Kauri bond debut, a joint lead said on Thursday. A Kauri bond is a bond sold by a foreign issuer in New Zealand.
NIB is owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. It gives priority to funding investments that boost economic co-operation between these countries.
Hard to see the NZD/USD staying down with money still coming in at this rate. Word on the street is that a large US bank was selling NZDs on behalf of a hedge fund over the last few days. All done now though.
Still see major currencies range-trading as the sub-prime fall out works it’s way through the markets.
SYDNEY, Sept 6 (Reuters) - The Nordic Investment Bank (NIB) has priced its NZ400 million ($276 million) 3-year Kauri bond debut, a joint lead said on Thursday. A Kauri bond is a bond sold by a foreign issuer in New Zealand.
NIB is owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. It gives priority to funding investments that boost economic co-operation between these countries.
Hard to see the NZD/USD staying down with money still coming in at this rate. Word on the street is that a large US bank was selling NZDs on behalf of a hedge fund over the last few days. All done now though.
Still see major currencies range-trading as the sub-prime fall out works it’s way through the markets.
NZD should see some support coming through as markets re-focus on the Monetary Policy Statement from the Reserve Bank next week.
2 comments:
I heard that hedge funds were selling our dollar for liquidity reasons rather than market fundamentals. Since the fundamental picture for NZ is still strong, I can see the dollar tracking up a few cents over the next few months.
The problem is market uncertainty, people are still scared out there. Hedge funds are being super cautious, and as long as they stay that way our dollar will struggle.
Agree still very skittish out there. But the damage has been done, now all we are seeing is the reporting of how bad it is. Agree it is a liquidity issue, but most funds who would have sold are already out of NZ. Banks are still hoarding cash globally, but this won't last too much longer.
8%+ is hard to ignore for too long, so it will be intereting to see Alan Bollards comments this week. Agree the NZD/USD is heading higher. I am long NZD against the Yen amongst other postions!
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